Reithofer has reason to smile after a good year, relatively, in a bad economy.
The BMW Group posted positive earnings for the financial year 2009 in the face of the ongoing Global Great Recession.
Profit before tax rose by 17.7% to €413 million compared with 2008 at €351 million.
Net profits declined, though, to €210 million from €330 million a year earlier or -36.4% due a higher effective tax rate.
This is a ten year low, and BMW stock prices have been hammered with preferred sharrs declining by two-thirds from recent highs just before the financial markets collapsed in 2008.
Revenues decreased moderately by 4.7% to €50,681 million from 2008′s €53,197 million. The dividend remains unchanged at €0.30 per share of common stock and €0.32 per share of preferred stock.
“We performed well in 2009 despite difficult market conditions worldwide. Our cost management and efficiency improvement measures had a positive impact, even though the effects of the worldwide financial and economic crisis were still being felt,” stated Norbert Reithofer, Chairman of the Board of Management of BMW in Munich.
“We are proposing a dividend for 2009 despite the difficult economic climate, demonstrating the confidence we have in our operating strength, and we also want our shareholders to participate in the company’s performance,” said Reithofer.
Automobile Segment Loses Money
Earnings of the automobiles segment dropped in 2009 due to lower unit sales brought about by the weak economies worldwide. The segment was able to generate a fourth-quarter profit before interest and taxes (EBIT) of €93 million.
For the full year, though, the segment recorded negative EBIT of €265 million (2008: positive EBIT of €690 million) and a loss before tax of euro 588 million (2008: profit before tax of €318 million). Revenues fell to €43,737 million (2008: €48,782 million.
Numbers, Good and Bad!
In total, the BMW Group sold 1,286,310 BMW, Mini and Rolls-Royce brand vehicles in 2009; -10.4% from 2008’s 1,435,876 units.
BMW Group retains its position as the world’s leading premium manufacturer.
BMW plans to sell “more than 2 million cars and sport- utility vehicles by 2020 compared with at least 1.3 million this year,” Reithofer said today.